The policy covers physical, eco-based, financial, and social resilience. It seeks to build risk governance structures, systems, and capacities. It supports regional cooperation and the building of partnerships and coordination with international and regional organizations, civil society organizations, the private sector, and academia to enhance various aspects of risk management. The policy takes into account the gender dimensions of risk management and applies participatory approaches. It provides sufficient flexibility to address new and evolving challenges and embrace new and improved approaches, innovations, and technologies.

The ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time) allow flexibility in the design and implementation of a project’s procurement arrangements to expedite the procurement process in emergency situations.

Standard conditions of effectiveness are stipulated in the loan regulations. They primarily relate to the legal validity of the relevant legal agreements4 for the project, 5 such as receipt of a legal opinion satisfactory to ADB. Project-specific conditions of effectiveness, if any, are set forth in the loan agreement. These are typically conditions critical for the smooth and efficient implementation of an ADB-financed project, such as the cross-effectiveness of co-financing for the project.

ADB manages the exchange risk in its operations by matching the currency or currencies loaned with those of the borrowings used to fund loans on an after-swap basis. As a result, ADB does not accept foreign exchange risk in its ordinary capital resource (OCR) lending operations.

ADB introduced the full-fledged special drawing right (SDR) approach to the ADF loans in 2006. Under this approach, loans were committed in SDR, and borrowers’ obligations for repayment of principal and payment of interest charges were determined in SDR (endnote vii). However, starting 1 January 2017, DMCs eligible for COL have the option to select the liability currency for each COL up to the time of loan negotiations, after which it cannot be changed. In addition to SDR, the choice of currency is one that is available under ADB’s Flexible Loan Product and is also in the SDR basket, subject to the confirmation of the availability of such currency by ADB.10 If any of the euro, the pound sterling, SDR, or yen is chosen as the liability currency, exchange rates for the loans11 would be based on the ADB rate and determined during formal loan negotiations (endnote viii).